Archive for gold spot

Following yesterday’s small hammer candle on the daily gold chart the spot gold price has recovered some of its poise today climbing back above the 40 day moving average to trade at time of writing at $1354.19 per ounce. As such we are now trading back above the 40 day moving average, a key indictor and for any longer term recovery and a continuation of the bullish trend we need to see the precious metal move back above both the 9 and 14 day moving averages which are currently at $1374.46 and $1372.03 respectively. A move above here will also coincide with a breach of the short term resistance in this price area and thereafter provide a strong platform for a move back towards $1400 per ounce and beyond. As I stated in a previous post the recent correction in the spot gold price is not a longer term reversal but merely reflects the market’s nervousness following the problems in Europe coupled with a potential slowdown in China.

An interesting and volatile for spot gold yesterday which saw the precious metal reach a high of $1424 per ounce and low of $1383 before closing the gold trading session as a narrow spread down candle but with wicks to both top and bottom, and eventually closing at $1396.35. The candle thus formed is giving us a strong signal that we may see a temporary pullback from the recent surge higher and indeed in today’s gold trading session so far, this has certainly been the case once again with the spot gold price oscillating between $1410 to the upside and $1383 to the downside. Should today’s doji candle be confirmed at the close tonight then this will add further weight to the analysis suggesting a re-tracement and a possible pullback to test the 9 day moving average which currently sits at $1377.21 on the daily spot gold chart.

Over the last two days this has remained untested and any breach here may bring the 14 day into play along with a potential platform of support at $1378.04. With the longer term trend still remaining firmly bullish yesterday’s candle is simply symptomatic of a market that was beginning to overheat and, as such, is cooling off before resuming its upwards path.

The bullish trend for spot gold shows no sign of abating with the spot gold price surging higher once again yesterday to close at $1405.50 per ounce, having achieved an intra day high of $1410.40. This bullish sentiment has spilled over in today’s gold trading once again, as the spot gold price has continued to climb to trade at time of writing at $1420.65, only $30 per ounce short of my end of year forecast of $1450 per ounce which I will now have to revise upwards!!

The upwards momentum has been given a further boost in the last few days by some loose talk of a possible return to some form of “gold standard” in an endeavour to bring some measure of control to the currency markets. However, given that the original gold standard was largely responsible for the Great Depression this seems highly unlikely, but it is certainly helping to propel the precious metal higher and indeed in an article I posted last night there was a suggestion that gold could even achieve $10,000 per ounce when considered against previous benchmarks of bonds and equities. You can read this article by following this link. Gold Standard

The longer term bullish trend for the spot gold price continued once again on Friday with the precious metal testing a low of $1343.46, only to close higher once again at $1394.75 ending the gold trading session as a narrow spread up candle but with a deep shadow to the lower body. As such the positive sentiment for spot gold was once again in evidence as indicated by the long lower wick of Friday’s candle which added further bullish intent to Thursday’s surge higher for the metal. The technical picture remains hugely supportive with all four moving averages pointing sharply higher and with the 9 day in particular continuing to offer excellent support in the short term. In today’s gold trading session we have seen a minor pullback, largely triggered by a small recovery in the US dollar, with gold trading at $1390.50 at time of writing. However, with the FED’s monetary policy now due for rollout, we can expect to see further sustained dollar weakness with a consequent gain for commodities as a result, with gold in particular moving towards our short term target of $1450 per ounce and then on to $1650 per ounce in the first half of next year.

Yesterday’s candle on the daily gold spot chart gave us a strong signal once again that the bullish sentiment for the commodity remains firmly in place with the low of the day bouncing off the 40 day moving average and subsequently recovering to hold above both the 9 and 14 day averages once again. The impetus for gold prices was duly delivered by the FED last night which has subsequently seen gold prices surge towards fresh, record highs as the precious metal trades at time of writing fractionally below the $1386.82 all time high at $1383.20 per ounce. The recent re-tracement, and subsequent sideways consolidation, has now produced a strong platform of support and, as such, this will no doubt provide the springboard for a sustained move higher as we move towards our year end target of $1450 per ounce and thereafter, possibly a longer term trend towards $1650 and beyond. The 9 day moving average has now crossed back above the 14 day average giving us a further bull signal and with the longer term moving averages now inclining sharply higher, the long term outlook for spot gold remains firmly bullish.